8/31/2020 STATUS OF PHILIPPINE AGRICULTURE LECTURE 1 TIMELINE OF AGRICULTURAL DEVELOPMENT 10000 BC 1960’s NEOLITHIC REVOLUTION Shift from hunter-gatherer lifestyle to sedentary farming with plant and animal domestication MACHINE REVOLUTION Farming became mechanized and commercialized with new inventions and technology such as tractor, seed drill and combines. 2020’s IOT REVOLUTION Smart Farming technologies are providing data to enhance decision making and if used properly can help contribute to reduce d waste, increase profits and yield, and protection of the environment. 1800’s 2000’s AGRICULTURAL REVOLUTION New patterns of crop rotation and livestock utilization paved the way for better crop yields, grater diversity of vegetables and the ability to support more livestock BIOTECH REVOLUTION Advanced technologies such as Ges and GMOs are used in farming to increase yields and maximize outputs from the same amount of land. 3000’s FARMING ON MARS ? 1 8/31/2020 PHILIPPINE TIMELINE FOR AGRICULTURE DEVELOPMENT 1898-1946 PRE- COLONIAL The Philippines has free trade China, Japan, Siam, India, Cambodia, Borneo and the Moluccas. AMERICAN COLONIAL ERA Different agricultural programs were reformed. Land and Farm Tenancy problems increased. 1565-1898 SPANISH COLONIAL ERA The Spanish regimen imposed encomienda system and monopoly of economy through galleon trade. Coconut and tobacco industry increased. 1947-PRESENT CONVENTIONAL AGRICULTURE Where are we now? PRE-COLONIAL PERIOD Based on the reports of Blair and Robertson: “...it [Luzon] has a great abundance of rice, fowls, and wine, as well as great numbers of buffaloes, deer, wild boar and goats; it also produces great quantities of cotton and colored clothes, wax, and honey; and date palms abound.“ Visayas: "rice, cotton, great numbers of swine and fowls, wax, and honey are produced in great abundance." Leyte was reported “to produce two rice crops a year”, and it was commented that “there was great rice and cotton harvests that were sufficient to feed and cloth the people.” 2 8/31/2020 PRE-COLONIAL PERIOD RICE • the Ifugaos of the Cordilleras built irrigation systems, dams and hydraulic works -- rice terraces • considered one of the worlds’ agricultural wonder PRE-COLONIAL PERIOD SUGARCANE • started some 2-4,000 years before Ferdinand Magellan reached the Philippines in 1521 • first introduced in Mindanao from vessels that brought the planting materials from Celebes • spread further north to the Visayan islands and Luzon • Cultivation was widespread in many islands 3 8/31/2020 PRE-COLONIAL PERIOD ABACA • In 1521 - the natives were wearing clothes made from abaca fiber • weaving of the fiber into breathable fabrics and sturdy sandals was already widespread in the islands PRE-COLONIAL PERIOD COTTON • growing abundantly in many places in Luzon, particularly in Bulakan • the name Bulakan" was derived from the Tagalog word "bulak” or cotton 4 8/31/2020 PRE-COLONIAL PERIOD TRADE • Filipinos were already trading with China, Japan, Siam, India, Cambodia, Borneo and the Moluccas • Manila was already a center of commerce Agriculture during the Spanish Colonial Times (1565 – 1898) 5 8/31/2020 Spanish Colonial Times ENCOMIENDA SYSTEM • an imposed landlord-tenant relations • The King grants the encomendero a specified number of natives whom he has to protect from warring tribes and to instruct them in the Spanish language and in the Catholic faith • In return he could exact tribute from the natives in the form of labor through the polos y servicios, gold, or other agricultural products Spanish Colonial Times • Polos y servicios = compulsory forty days labor per year owed by tribute payers to the state • Servicio = performed by men and women and consisted largely of domestic service in churches and conventos • polo = was hard labor performed by men in activities such as government building construction, church building, rowing and fighting in military expeditions, and the dreaded cortes de madera, cutting and hauling of trees and building galleons and warships. 6 8/31/2020 Spanish Colonial Times GALLEON TRADE • the Manila–Acapulco Trade = a government monopoly • Manila as the central depot for all of Spain’s commercial activities in Asia (1565 – 1811) • only two galleons: Acapulco to Manila (120 days at sea) and Manila to Acapulco (90 days at sea) Spanish Colonial Times GALLEON TRADE • allowed the establishment of a flourishing shipping industry in the Philippines • caused massive destruction of the Philippine forest • blamed for the lack of development of Philippine agriculture and industry • War of Independence in Latin America that ended the galleon trade 7 8/31/2020 Spanish Colonial Times GALLEON TRADE • Along with loads of silver, the galleons also brought from the Americas - horses, books and new food resources such as corn, pineapple, and chocolate • about 250 Nahuatl (or Aztec) words in the Filipino language, the names of fruits and vegetables are probably the largest contributors of Latin American words to the Filipino vocabulary Spanish Colonial Times • Mango seedlings were brought to Mexico in 1779, crossed with other varieties of mango to produce the so-called “Manila mango” - now a favorite variety in Mexico • Filipino workers brought to Mexico to cultivate sugar cane and rice took with them tuba, which is still sold along the streets and in markets of Mexico • Agricultural reforms (after 1811) ▫ ▫ ▫ ▫ ▫ Shift to cash crops: indigo, tea, silk, opium, poppies, and abaca the development of local industry for export Incentives given to farmers for planting cotton, spices, and sugarcane Miners were encouraged to extract gold, silver, tin, and copper Inventors were rewarded for scientific discoveries 8 8/31/2020 Spanish Colonial Times COCONUT • Coconut industry started in 1642 • used as food for the natives and soldiers and for caulking and rigging of galleons • 1840 –coconut products traded in small quantities with Chinese/Malay traders • late 1800s – copra and coconut oil were exported to Europe as raw material ingredient for soap and margarine Spanish Colonial Times SUGARCANE • 1755 - exported sugar to China and other Asian countries • 1779 - largest sugar exporter in Asia • 1796 - sugar trade between the Philippines and US • 1855 - Negros became the center of the Philippine sugar industry ▫ liberal credit terms for local landlords to plant the new crop ▫ encouraged the migration of labor from the island of Panay ▫ introduced steam-driven sugar refineries that replaced the traditional method of producing low-grade sugar 9 8/31/2020 Spanish Colonial Times • boom in sugar production tripled the population of Negros • Local "sugar barons"-- the owners of the sugar plantations-became a potent political and economic force by the end of the 19th century, and this persisted until today • commercial cultivation of sugarcane and coconuts started during the Spanish colonial period. Sugar and coconut become prominent elements of the Philippine economy Spanish Colonial Times TOBACCO • Introduced by Augustinian friars when they brought 6.2189 kg of cigar tobacco seeds in the last quarter of the 16th century • Establishment of the tobacco monopoly • Cagayan Valley, Ilocos Norte, Ilocos Sur, La Union, Isabela, Abra, Nueva Ecija, and Marinduque • exported the tobacco to other countries and also part of it to the cigarette factories in Manila 10 8/31/2020 Spanish Colonial Times • • • • monopoly brought in large profits for the colonial government made the Philippines a leader in world tobacco production tobacco monopoly was abolished in 1880 Philippine cigars maintained their high reputation – remained popular throughout the Victorian parlors in Britain, the European continent, and North America Spanish Colonial Times ABACA • commercial production of the abaca fiber was originally confined only to the Philippines because it is regulated by the government • popularity of abaca fibers started in 1820 when an American military man brought abaca fiber samples to the US • export shipments of abaca were made to Salem, Massachusetts = Manila Hemp • US became the largest importer of abaca (i.e., navy) - used the abaca rope ▫ its notable tensile strength ▫ resistance to salt water decomposition ▫ abaca was, and still is the strongest of all natural fibers ▫ planted in Bicol region and the eastern portions of the Visayan Islands 11 8/31/2020 Spanish Colonial Times INDIGO • part of the Galleon and Chinese trade • one of the oldest dyes in civilization and one of the most widely used natural dyes in the whole world due to its excellent colorfastness properties • once extensively used in the weaving industry including the abel llocos "woven in llocos.", also called inabel Spanish Colonial Times • Inabel fabrics, famous for its quality and durability, were used as sailcloth for ships and boats • Real Compaña de Filipinas = the textile industry was developed on a large scale and inabel was one of the major exports of colonial Philippines 12 8/31/2020 Spanish Colonial Times ECONOMIC DEVELOPMENT • when Spain opened Philippine ports in 1835, it allowed the planting and trading of cash crops to other countries (cane sugar, molasses, indigo, abaca, tobacco and coffee) • Rice farmers began planting these cash crops, and by 1870 there was already a rice shortage in the country • Philippines began importing rice from Indochina = 45,000 t/year by 1890’s • decline of indigenous agriculture and the abandonment of production systems and cottage industries Spanish Colonial Times ECONOMIC DEVELOPMENT • able-bodied Filipinos were taken away from their lands and families - forced to work for the government in shipyards or as rowers for the galleons, and laborers for the haciendas for cash crop production • removal of the Filipinos from the lands that are integral part of their belief system and way of life alienated them from the resource that they highly venerate • led to overexploitation of the natural resources – it began with the Spanish colonization and accelerated during the American colonization 13 8/31/2020 Agriculture during the American colonization (1898 – 1946) American Colonization TENANCY PROBLEM • through land titling, the landlord-tenant relationships and structure of the hacienda system was maintained • kasama (sharecropper) system - in the rice growing areas of Central Luzon and the Visayan Islands • landowners - inputs for production and the cash needed to tide cultivators over during the planting season 14 8/31/2020 American Colonization ▫ tenant - tools and work animals and were responsible for half the expense of crop production ▫ equal share of the harvest but only after the owner had deducted a portion • 3-tiered land tenancy arrangements – landlord, “inquilino”, kasama • created a class of peons or serfs – children inherited the debts of their fathers, and over generations, families were tied in bondage to their estates for expenses • contracts usually were unwritten, and landowners could change conditions to their own advantage American Colonization Worsening tenancy problems due to: 1. the rapid increase in the national population (7.6 M in 1905 to 16 M in 1939) 2. erosion of traditional patron-client ties 3. increase in the area under cultivation, stimulated by US demand for cash crops • 1939 - the wealthiest 10% of the population received 40% of the islands' income • New urban centers rose, often with an Americanized culture • The elite left the countryside to become absentee landlords, leaving estate management in the hands of frequently abusive overseers • Philippine Constabulary played a central role and was used intensively in suppressing anti-landlord resistance 15 8/31/2020 American Colonization AGRICULTURAL PROGRAM • 1901 - a policy of diversification was adopted for development of other agricultural products, like rice and other basic commodities, and also fishing, forestry and mining • Creation of the Insular Bureau of Agriculture • 1909 - The Payne-Aldrich Act was enacted ◦ limited free trade with the US ◦ resulted to an aggressive expansion of agricultural lands ◦ Industries such as sugar mills, coconut oil mills, textile factories, distilleries, mining and rope manufacturing were also established ◦ Export of sugar to the US under preferential terms ◦ Then, as in the recent past, the US has become the country’s principal export market American Colonization Economic development during the American colonial period - Artificial and Extractive • Philippine market became dependent only on the US • Philippine foreign trade flourished during the American era, domestic trade was still slow and controlled by foreigners During the Commonwealth era domestic trade was owned: ◦ Filipinos - 25 % ◦ Chinese - 50 % ◦ Japanese - 20 % ◦ other foreigners - 5 % 16 8/31/2020 STATUS OF PHILIPPINE AGRICULTURE WHERE ARE WE NOW? FOOD SECURITY IS THE ULTIMATE GOAL OF PHILIPPINE AGRICULTURE. Food Security exists when all people at all times have physical and economic access to sufficient, safe and nutritious food to meet dietary needs and food preferences for an active and healthy life (FAO 1996) “farm to fork” & “fork to belly” = nutrition-sensitive agri 17 8/31/2020 FOOD SECURITY Dimensions: 1. AVAILABILITY – it means that food and basic needs are enough for everyone in terms of physical quantities 2. ACCESSIBILITY – it means that food and basic needs can be acquired anywhere the people are. People have the ability to secure their needs. 3. STABILITY – The production of food and basic need is sustainable and not just for short period use. 4. UTILIZATION – the food the people consume give them essential nutrients that the body needs to be healthy and happy. The Philippine economy posted a 6.1% growth in the fourth quarter of 2018, driven by the Services sector which posted the highest share to GDP of 56.2%, followed by Industry (34.8%), and Agriculture, Hunting, Forestry and Fishing (8.9%). 18 8/31/2020 GROWTH AMONG THE MAJOR ECONOMIC SECTORS ▫ Industry grew the fastest at 6.9%, mainly attributed to Construction sector which expanded by 21.3%. ▫ Service sector with 6.3%, ▫ Agriculture sector only grew by 1.7%. SEE: https://drive.google.com/file/d/1YkyAplK5IaUvGx0Rm0DGYuPAtABI2pCf/view In 2018, 25.19 percent of the employees in the Philippines were active in the agricultural sector, 18.34 percent in industry and 56.48 percent in the services sector. © Statista 2019 19 8/31/2020 Employment in AGRICULTURE SECTOR 60% 44% 1960 1990 37% 2006 25.19% 2019 Within 60 years, the employment allocation of Agriculture sector decreases 34.81% Characteristic of Filipino Farmers Average Age: 57 Source: Bureau of Agricultural Statistics Small Farmers (average 2ha) Source: Bureau of Agricultural Statistics Daily wage rate (Ph Peso) male farmers: 176.44 female farmers: 169.27 Source: Bureau of Agricultural Statistics 20 8/31/2020 LAND AREA About 30 million ha Land Area About 47% (14.2 million) are alienable and disposable lands (93% of which- 13 million ha are agricultural lands). The remaining 15.8 million ha were classified as Forest lands. CROP PRODUCTION Crop production is a branch of agriculture that deals with growing crops for use as food and fiber (study.com, 2019). The crop production group evaluates agricultural practices and systems concerning crop yield, profit, environmental and ecological consequences with the goal of identifying best practices for local and international growers to produce more with less (University of Illinois, 2019). 21 8/31/2020 CROPS subsector is STILL the highest contributor to the agricultural production in Bicol Region. Importance of Crop Production Agronomic crops provide food, feed, grain, oil, and fiber for domestic consumption and export trade. Horticultural crops are grown specifically to satisfy nutrition for human diets and enhance the living environment. (USDA, 2019) 22 8/31/2020 Horticultural crops Local Crop Produce Major Exports 23 8/31/2020 GLOBAL COMPETITIVENESS OF AGRICULTURAL PRODUCTS Export Competitive Crops/ Products Importance of Crop Production In the Philippines, the main agricultural crops are: Rice, Corn, Coconut, Sugarcane, Bananas, Pineapple, Coffee, Mangoes, Tobacco, and Abaca. 24 8/31/2020 Importance of Crop Production Secondary crops include: Peanut, Cassava, Camote , Garlic, Onion, Cabbage, Eggplant, Calamansi, Rubber, And Cotton. Livestock and Poultry Produce from the livestock and poultry subsectors include: cattle, carabao, goat, hog, chicken, and ducks. 25 8/31/2020 Fisheries The Philippines is a rich source of fishery products, but the most commonly-consumed seafood include: milkfish, tilapia, roundscad (galunggong), prawns, crabs, tuna (skipjack and yellowfin), and seaweeds. Agriculture Sector Performance Value of Production (January-March 2014-2016) (in million pesos) 250,000.00 200,000.00 150,000.00 2014 2015 2016 100,000.00 50,000.00 0.00 Crops (-3.5%) Livestock (1.23%) Poultry (8.85%) Fisheries (-5.43%) Gross earnings amounted to Php 375.20 billion or 1.49% lower that last year’s earnings. 26 8/31/2020 100 90 80 70 60 Q1 Q2 Q3 2019 Q1 50 40 30 20 10 0 CROPS LIVESTOCK POULTRY FISHERIES Crop Production is still the highest contributor the nation’s agriculture performance. Despite the decrease in production, the earnings for the livestock and poultry subsectors increased, which is an indicator that prices of the products belonging to this subsector only increased due to lack of supply and high demand. 27 8/31/2020 The Department of Agriculture provides various support, from production to market, to help the local farmers and to promote the Philippine standard for agriculture. Production Support DA Intervention: Provision of seeds, farming tools/machines, breeders stocks (e.g. livestock and fish), among others 28 8/31/2020 Postharvest Support DA Intervention: Provision postharvest facilities such as dryers, processing complexes, storage facilities, tramlines, etc. to reduce postharvest losses Research, Training, & Extension Services DA Intervention: Conduct of research, trainings, workshops, technical assistance, Farmer Field Schools, etc. 29 8/31/2020 Research, Training, & Extension Services Examples of DA Researches: ▫ Research on Climate Resilient Crop Varieties by Philippine Rice Research Institute (PhilRice) in Nueva Ecija ▫ Researches on designing farm machineries appropriate to Philippine farms, as well as gender-sensitive farm tools/machineries by Philippine Center for Postharvest Development and Mechanization (PhilMech) Extension services refers to the application of scientific knowledge in the agricultural practice by educating the farmers. It aim to educate and empower the farmers so that they can become more efficient and profitable in their farming activities. ▫ Examples of Extension Services: trainings, workshops, technical assistance, technology transfer, and Farmer Field Schools (FFS). Marketing Assistance DA Intervention: - Promotion of local products in the domestic and international markets (e.g. trade fairs, business matching, etc.) - Linking farmers with institutional buyers (e.g. manufacturing companies, restaurants, etc). 30 8/31/2020 Marketing Assistance Aside from our traditional exports (coconuts, bananas, pineapples, and mangoes), the DA has been active in promoting products that are organic and those produced by the women and indigenous people, in international trade fairs. Furthermore, the DA also links our farmers with institutional buyers such as manufacturers and restaurants in order to expand market opportunities, particularly for our women and IP farmers. Examples of this are the calamansi rinds from the Mangyans which are used in making Manille Liqeur de Calamansi and heirloom rice from the Ifugaos of the Cordilleras. Marketing Assistance • Help upgrade standards to levels acceptable in the local and export markets • Establish enterprises based on the comparative advantage of each province 31 8/31/2020 Marketing Assistance • As part of our marketing assistance services, the DA helps our farmers upgrade their standards to level acceptable to local and export markets. Examples of these are compliance to Good Agricultural Practices, Hazard Anaylsis Critical Control Point (HACCP), and Halal, to name a new. • We also have regulatory agencies such as the National Meat Inspection Service (NMIS) which check and ensures the compliance of meat products to acceptable standards. • We have also assisted our farmers in establishing enterprises based on the comparative advantages of their provices. For example, garlic from Ilocos, Heirloom Rice from the Cordilleras, peanuts from Cagayan, and calamansi from Oriental Mindoro. The “Rising Stars” • or agricultural products that have potentials to be mainstreamed in the local and international markets due to their nutritional value, unique taste, and versatility as ingredients. 32 8/31/2020 Heirloom Rice Producers: Cordillera Administrative Region (CAR) Varieties: Imbuucan, Lasdakan, Ominio, Tinawon, Unoy, Ulikan, Balatinaw, Jekyot, Chong-ak “aims to enhance the productivity and enrich the legacy of heirloom or traditional rice”. Photo credits: www.heirloomrice.com Cacao • Producers: Davao Region, Cebu, Bohol, North Cotabato, Bicol Region • Varieties: Criollo, Forastero, Trinitario • Products: candies, artisan chocolates, tablea, raw beans, nibs 33 8/31/2020 Coffee • Producers: Batangas, Negros Occidental, SOCSKARGEN, Davao Region, Bukidnon, Benguet, Cavite, Kalinga, Apayao, Iloilo • Varieties: Arabica, Liberica (Barako), Excelsa, Robusta • Products: dried beans, green beans Adlai • Producers: Cagayan Valley, Zamboanga Peninsula, Northern Mindanao, CALABARZON • Products: adlai grains, adlai flour, adlai tea, adlai wine, adlai coffee 34 8/31/2020 Calamansi (Philippine Lime) • Producers: Oriental Mindoro, Zamboanga Sibugay, Pangasinan, Aurora, Nueva Ecija, Batangas, Quezon, Guimaras, Leyte, Compostela Valley, North Cotabato, Agusan del Sur • Products: Calamansi juice, puree, marmalades, syrup, liqueur Pili Nuts • Producers: Albay, Camarines Sur, Sorsogon, Northern Samar • Products: marzapan de pili, pili brittle, pili turon, pili candies, dried pili shoots, kernels 35 8/31/2020 Souring Agents Kamias Tabon-Tabon (CALABARZON, MIMAROPA) (Northern Mindanao) Batuan (Negros Occidental) Sua (Northern Mindanao) References: • The State of Philippine Agriculture (June 29, 2016) by Undersecretary Bernadette Romulo-Puyat. Department of Agriculture. Philippine Restaurant Investment Conference • psa.gov.ph 36 8/31/2020 • Rice, corn, coconut and many crops are principally produced by small farms. Prior to CARP, there were large plantations in rubber, coffee, oil palm, cacao, banana, pineapple, etc. Contract growing schemes operate in corn seeds, banana, tomato, cucumber, oil palm, asparagus and broiler chicken. • This attaches the high priority of transforming agriculture into a modern, dynamic and competitive sector. A sustained expansion of the national economy requires sustained growth in the agricultural sector. 37